Williams v. Coe

417 So. 2d 426
CourtLouisiana Court of Appeal
DecidedJune 29, 1982
Docket14945
StatusPublished
Cited by11 cases

This text of 417 So. 2d 426 (Williams v. Coe) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Williams v. Coe, 417 So. 2d 426 (La. Ct. App. 1982).

Opinion

417 So.2d 426 (1982)

David R. WILLIAMS and Marie T. Williams
v.
Dr. Relvert COE.

No. 14945.

Court of Appeal of Louisiana, First Circuit.

June 29, 1982.

*427 Gerald L. Walter, Jr., Baton Rouge, for plaintiffs-appellees David R. Williams and Marie T. Williams.

Donn Moss, Baton Rouge, for defendant-appellant Dr. Relvert Coe.

Before COVINGTON, COLE and WATKINS, JJ.

COLE, Judge.

The issues presented are whether or not the defendant breached an agreement to sell certain property to the plaintiffs, and whether or not certain claims arising out of the agreement are compensable. The facts giving rise to this dispute are as follows. Dr. Relvert Coe and his late wife, Jean Dasher Coe, were owners of a certain piece of property identified as Lot 7, Square 2, Glenmore Subdivision, in Baton Rouge, Louisiana. Mrs. Coe died in 1958 and her *428 four children[1] were placed in possession of her undivided one-half interest in the property by virtue of a judgment of possession. Thereafter, Dr. Coe married Phyllis Iris and they lived on the subject property until March 1976. Dr. Coe then moved to Florida. Shortly thereafter Phyllis Iris Coe filed a petition for separation and also a notice of lis pendens, claiming a community interest in the subject property.

On July 6, 1976, Dr. Coe signed a purchase agreement with David R. Williams and Marie T. Williams agreeing to sell the property for the sum of $59,900, dependent upon the Williams' ability to secure a loan. A lending institution approved the loan but the attorney for the institution noted that Dr. Coe was in fact the owner of only a one-half undivided interest in the property.

Dr. Coe (through his son Jason) assured Mr. and Mrs. Williams the act of sale would go through as soon as powers-of-attorney were secured from all the children. With Dr. Coe's permission, the Williams family moved into the residence (located on Longwood Drive) in August of 1976, and began making necessary repairs and improvements to the house and swimming pool.

Shortly after occupying the house the Williamses learned that in addition to their being some difficulty in obtaining the powers-of-attorney from the children, Phyllis Coe was making a claim against the house.

In April of 1977, Mrs. Coe caused a writ of attachment to be issued on the house and in March of 1979 a writ of fieri facias was issued.[2] The house was sold at a sheriff's sale in May of 1979 and the Williamses were required to vacate the premises in June of 1979.

The Williamses filed suit against Dr. Coe seeking damages for the breach of the purchase agreement. Dr. Coe reconvened for the reasonable rental value during the 35 months in which plaintiffs occupied the house, and for alleged damage to the premises.

The enforceability of the agreement was presented to the trial court in the form of a stipulation which essentially set forth the above mentioned facts. The court made a ruling on the stipulation as follows:

"Since the defendant new (sic) or should have known that he did not own the entire interest in the property at the time of purchase agreement, he should not have agreed to convey the entire interest.
"Therefore, the Court feels that he is subject to damages, if any can be proved, payable to plaintiffs."

Thereafter, a hearing was set to hear evidence on the issue of damages only.

After the hearing the court rendered judgment in favor of Mr. and Mrs. Williams and against Dr. Coe. The court noted Dr. Coe's claim for the reasonable rental value was offset by the Williams's claim for the appreciated value of the property, therefore no money was awarded on either of those claims.[3] The court awarded plaintiffs $4,545.75 for repairs and expenses including $2,435.75 for paint, $200 for electrical repairs, $1,710.00 for swimming pool expenses, and $200 for moving expenses. Plaintiffs were also awarded $1,300 for attorney fees, for a final total of $5,845.75. Dr. Coe appealed and Mr. and Mrs. Williams answered the appeal.

Appellant (Dr. Coe) raises three specific errors. First, he contends the purchase agreement was null and void by its own terms when after a reasonable period of time he was not able to deliver a merchantable title. The purchase agreement states the act of sale was to be passed within 60 *429 days, which would have been September 4, 1976. He calls particular attention to a part of the printed form which reads as follows:

"In the event title is not valid and cannot in reasonable time and at reasonable expense be made valid, this contract shall be null and void and the deposit shall be immediately returned."

Dr. Coe maintains since a merchantable title was not available after a reasonable length of time, the purchase agreement became null and void and plaintiffs are limited by the agreement to seek the return of their deposit, but should not recover damages. We agree the purchase agreement became null and void after a reasonable length of time but conclude the respective parties incurred certain obligations as incidents to the contract, for which they are liable.

During the first few months of their occupancy plaintiffs were aware of problems with obtaining clear title but, due to assurances and the ongoing negotiations between Dr. Coe and Mrs. Coe of which they were aware, were justified in remaining in the house with the hope title would be cleared and the sale passed. But when they learned of the writ of attachment in April of 1977, they were informed of the serious nature of the title problem. As admitted by Mr. Williams: "[W]e realized then that this was a serious problem and that the Act of Sale might ... might be in jeopardy." He added: "[I]t was explained to me at that time that the writ of attachment was going to make it impossible to clear the title until it was removed." At that point in time it was clear to Mr. and Mrs. Williams the defective title of which they had known for several months had not been made "valid" and that efforts to make it valid within a "reasonable time," provided for in the agreement, had finally failed. Some ten months had passed since the agreement was confected and we construe this period to fulfill the "reasonable time" requirement. Therefore, under the terms of the purchase agreement, the contract became null and void as of April 1977.

In the case of Clark v. Harrison Property Management Co., Inc., 359 So.2d 614 (La. 1978), a similar situation was presented. Therein, the seller could not convey title due to defects. The agreement provided: "The seller shall deliver to purchaser a merchantable title, and his inability to deliver such title within the time stipulated herein shall render this contract null and void, reserving unto purchaser the right to demand the return of the deposit...." This provision is essentially the same as that found in the instant matter, the only difference being a particular time was stipulated as contrasted to the "reasonable time" provided for herein.

In Clark, after noting a merchantable title could not be delivered by the seller within the time stipulated, the Supreme Court, at page 616, held:

"Under the clear terms of the contract, which is the law between the parties, the seller was unable to deliver merchantable title within the time stipulated and the contract was rendered `null and void, reserving unto purchaser the right to demand the return of the deposit from the holder. * * *'"

We find Clark

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Bluebook (online)
417 So. 2d 426, Counsel Stack Legal Research, https://law.counselstack.com/opinion/williams-v-coe-lactapp-1982.